The purpose of risk management is to identify potential pitfalls or problems before they happen so that risk-handling actions may be put into place and enforced accordingly on the course of the product or project to prevent adverse outcome and minimize its effects on the enterprise.
Risk management objectives: Protect employees for hazards resulting to injuries or even deaths; Due attention given to cost of handling risks; Effective utilization of resources; and maintain good relationship with colleagues and the community.
1. Examine and discuss the benefits of risk management within an enterprise.
Risk management yields benefits to the employees, the project, and stakeholders / enterprise. Benefits are:
Improve the identification of opportunities and threats.
Encourage proactive management.
Improve stakeholder confidence and trust.
Effectively allocate and use resources for risk treatment.
Improve operational effectiveness and efficiency.
Enhance safety performance and environmental protection.
Improve loss prevention and incident management.
Improve organizational learning ad resilience.
2. Examine and discuss each of the following risk management components explaining how they relate to the overall role of the ‘risk management’ function.
Risk management is carried out as a holistic, organization-wide activity that addresses risk from the strategic level to the tactical